OUR EXPERTISE Asset Allocation
Returns of different asset classes vary widely over time, and studies have shown that asset allocation decisions usually generate the lion’s share of a portfolio’s performance.
Asset Allocation Challenges of today’s financial markets
The past 2 decades have given us the opportunity to master the craft of managing multi-asset strategies that meet the widely differing needs of all our clients. As a result, our strategies have consistently posted strong risk-adjusted returns over the years.
All of our asset allocation solutions are based on the principles of high conviction, selecting the right asset classes at the right time, and broad diversification. We firmly believe that these 3 elements are at the very heart of successful multi-asset portfolio management.
Our well-diversified multi-asset strategies are designed to beat their benchmark regardless of the market environment by taking active allocation decisions.
Available in four risk profiles – defensive, conservative, balanced and dynamic – they are ideal solutions for investors willing to accept some of the volatility that the markets inevitably bring in order to capture the best investment opportunities.
ESG and SRI multi-asset strategies – with a focus on ESG (Environmental, Social and Corporate Governance) and SRI filters – are also available to respond to the increasing demand. Our ESG and SRI approaches will go beyond traditional financial risk analysis to capture extra-financial risks and opportunities. The inclusion of ESG criteria in the evaluation of a company’s business activities is a source of long-term value. Various approaches can be combined to meet the needs of our investors.
Our downside risk control strategy aims to perform in line with the markets when they are rising and to protect our clients’ money when markets are falling. To achieve this goal, we use strict risk control techniques and have the flexibility to allocate up to 100% of the strategy’s assets in cash whenever market conditions become difficult.
This strategy could be an ideal solution for investors looking to receive regular income distribution whatever the market environment.
Deliverable in 2 versions, this strategy is reflected in highly flexible portfolios that can quickly change their asset allocations as the market backdrop changes, with the extra benefit of a risk-budgeting approach to control volatility and minimise drawdowns. This enables us to rapidly exploit opportunities when they arise and to protect our clients’ assets, as and when necessary.
In the aftermath of the 2008 financial crisis, we were among the first asset managers to recognise the benefits of true asset class diversification, incorporating into our portfolios the less traditional or conventional ones such as emerging-market assets, high-yield credit, currencies and absolute-return vehicles.
This added diversification has been completed by our use of advanced portfolio management procedures, including downside risk control and optimised asset allocation techniques.
At Candriam, asset allocation is truly a matter of teamwork. The asset allocation team, which consists of 8 highly experienced professionals of the financial sector boasting long track records with both the team and Candriam, is responsible for the cross-asset research and the definition of the house view on asset allocation. They base their determining key findings on in-depth fundamental, technical and strategic research.
The team’s advisory role goes full circle during the monthly asset allocation committee meeting, during which the team also outlines propositions on how to implement their convictions in the portfolios we manage. This committee is attended by our CIO and key representatives of the Private Mandates, Institutional Portfolio Management and Fixed Income teams.
This meeting is the opportunity for all involved to gain from the asset allocation team’s strategic input and coordinate harmonious implementation where needed to best serve our clients.
We believe there are some excellent reasons for choosing Candriam to manage your multi-asset portfolio.
Needs
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